So what exactly is..

Six Sigma?
recognise many of the concepts. There is little new about Six Sigma, except it brings together many successful techniques. What's the secret of its success? Six Sigma advocates would probably say that it is the correct application of the steps and tools. Interestingly, previous initiatives that had faded out at GE and elsewhere had used similar tools to Six Sigma. Six Sigma is driven from the highest level of the organisation. In most cases, Black Belts are released from their day-toSo how does Six Sigma work? day work to work full-time on projects. The generic process is as follows: In GE, 40 per cent of executives' incenDefine the goals of the existing system tives are tied to key Six Sigma achievechoose a process or product critical to busi- ments. In Motorola, Black Belts receive ness success. bonuses for project success. * Measure the current system - select a Like any successful initiative, Six Sigma characteristic critical to quality, and map requires top management commitment, and measure the process. provision of appropriate resources and Analyse the system - benchmark to iden- training; however, many question the need tify potential areas for improvement, using for four weeks' statistical methodology. simple quality tools and basic statistics. improve the system - determine how to Is there a less complex alternative? change the process significantly and cut One simple way to start is to get a group defect levels, maybe using more advanced of those involved with a process to define tools such as experimental design. it in a flowchart. This reveals differences in * Control the new system - standardise understanding of the process and can and monitor the new process to ensure the highlight possible changes. gains are realised. This may involve using Six Sigma focuses on measurement, but statistical process control (SPC). once the measures have been decided, advanced statistical methods are not needed. The well-used seven simple quality Lots of statistics, then? Typical Six Sigma training programmes rely tools, including histograms and run charts, strongly on statistical methods. These are in conjunction with basic statistical process control and simple statistical methods, will taught to proposed project leaders (Black suffice for many situations. Belts) usually in four one-week sessions Overloading individuals with statistical over four months, complemented by a promethodology will not necessarily produce ject applying the techniques. Green Belts success. What is needed is a knowledge of (project team members) receive two oneweek training sessions. Some US courses practical, straightforward methodologies can run to $20,000 or more per Black Belt. that everyone can put into practice - problem solving, process mapping, seven simple tools, SPC and teamworking. Is training the same everywhere? where a process's output can just meet the required specification-this wouId be three sigmas. The aim of Six Sigma is to reduce the width of the car such that two cars would fit into the garage - representing six sigmas. In process terms, this would reduce the number of defects to 3.4 per million. Unfortunately there is no Six Sigma standard, each provider offers a different view and curriculum. Some say successfully completing two projects qualifies you as a Black Belt; some say three; others give accreditation to those who have simply completed the training course. Motorola itself has additional Yellow Belts and one consultancy has the position of Brown Belt. One company has created Lean Sigma from Six Sigma and Lean Manufacturing! Is any of this really new ? Those who have lived through quality initiatives during the last 20 years will Did you say teamworking? Yes-knowledge of teamworking and facilitation is also essential, and basic project management skills may need to be added. More advanced tools can be picked up as and when needed. If you need help, find a company that has had success in the application of statistical methods, not one that simply delivers a training course. Stephen Halliday is a chartered statistician with WDP Consulting. Contact him on 01763 837111 or see the website at www.wdpconsulting.com

It hasn't yet hit many British businesses, but in the USA Six Sigma is heralded as the next step to quality improvement and business excellence. Stephen Halliday explains
What's it about, then? Six Sigma is about understanding variation within products or processes. Reducing this variation produces more consistent product functionality or process output - leading to better processes, more reliable products, lower costs and ultimately happier customers. Where does it come from? In 1985, Bill Smith of Motorola presented . a paper showing that products assembled error free rarely failed during early use by the customer. Another Motorola employee, Mikel Harry, modified the principles and set up his own consultancy (Six Sigma Academy). In the mld-1990s, Jack Welch proclaimed that GE was making great savings with Six Sigma; other major American firms then became Six Sigma devotees. What is Sigma, and why six? 'Sigma' describes the spread of the output from a process. As sigma increases, this spread reduces, product reliability goes up, the need for testing and inspection diminishes, work in progress, costs and cycle time fall and customer satisfaction rises. Consider a car that just fits into a garage: one small shift to either side will damage the car. This depicts the situation

WORKS MANAGEMENT JANUARY 2001